Regions Financial Corp (RF) is continuing to adjust its bank branch numbers as customers increasingly use mobile and technology-driven banking paths, said David Turner, the company’s CFO. He and company Treasurer Deron Smithy addressed the 33rd annual BancAnalysts Association of Boston Conference.
The Birmingham-based Regions Financial operates in 16 Southeastern states. Turner said the footprint is characterized by “high market share, high-growth markets,” and includes “some of the most attractive locations and markets in the Southeast..”
Regions has 1,671 locations. “Branches are still very, very important to Regions,” said Turner, noting that 60% of the company’s customers will walk through the branches in the next 30 days. As such, the company is experimenting with several new designs, but will continue its branch consolidation drive in the next year. Last year, almost 19% of the branch count was consolidated, Turner said.
Part of the drive for consolidation centers on technology. Turner said 37% of Regions customers are using the mobile channel, representing a 20% year-over-year growth rate. “We do understand that Millennials in particular don’t want to go in the branches,” said Turner. The company is making investments in mobile and online technology, including a new iPad application.
Regions Financial’s retail network strategy has four prongs. Flagship branches are up to 10,000 square feet and will be placed in very highly populated areas, and will have wealth management and business banking capabilities. Regions then has its neighborhood branches, which are 2,500 to 4,000 square feet. They also have 1,000-2,500-square-foot branches for the micro markets, Turner said, and will also have unmanned ATMs, some of them drive-up operations.
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